6 Essential Strategies for Enhancing Customer Experience Using AI

The decision made by the All-England Lawn Tennis Club to utilize AI instead of human line judges at Wimbledon represents a pivotal shift in the spectator experience. While some may embrace this modern approach, appreciating the elimination of disputes between players and officials over contentious decisions, others — especially those attending the event in person — may find that this alters the traditional grandeur of the player and official introductions during the opening ceremony.

Though this technology holds the potential to enhance precision and streamline processes, it also invites scrutiny regarding its effect on personal interactions with a brand.

This exemplifies the increasing influence of AI in shaping customer experiences at a time when consumer expectations are on the rise. Research indicates that eighty-six percent of customers are willing to pay a premium for exceptional service, with some studies showing individuals ready to pay up to 13% (and even 18% for high-end services) for luxury experiences.

Marketers now find themselves navigating through algorithms that dictate everything from customer-facing services to backend operations. This scenario underscores the necessity for marketers to strike a balance between leveraging technology and fostering human connections.

“Customers need both an entry and an exit ramp,” notes Lynn Hunsaker, a consultant specializing in customer management and an established expert in customer experience. This means marketers must comprehensively understand the entire customer journey — from initial engagement to final touchpoint — to identify how AI can enhance that journey effectively.

The two faces of AI in customer experience

AI can be categorized primarily into two types: visible and invisible. Visible AI interacts directly with customers through tools like chatbots and virtual assistants that offer prompt assistance, respond to inquiries, and engage in conversational exchanges. In contrast, invisible AI operates behind the scenes, sifting through data, enhancing workflows, and tailoring experiences.

The optimal customer experiences blend both types into a cohesive process. Take, for instance, the straightforward task of purchasing a wedding dress. This process transcends mere problem-solving and necessitates inputs from various parties.

A visible AI chatbot may initiate customer interactions, but invisible AI gauges the customer’s emotional state and urgency. It can escalate matters to a human representative, equipping them with insights into the customer’s history, feelings, and potential solutions — facilitating quicker, more empathetic resolutions.

Marketing and customer experience leaders must remain vigilant about how AI navigates between visible and invisible interactions. These transitions should be smooth, without causing frustration through repetitive requests for the customer’s name, account number, or concern at each stage.

Explore further: Customer experience management in the era of autonomous AI

AI-driven sentiment analysis can determine a customer’s satisfaction or frustration levels, and this information should be relayed to the appropriate departments for action. Likewise, in customer support, AI systems should ensure that when a bot connects with a human agent, that agent has comprehensive access to the customer’s context and sentiment.

How can you enhance your customer experience?

Here is a method to review your customer process and spot areas needing improvement:

1. Pinpoint a customer journey that requires refinement. Identify processes that are well-known within the organization but could present difficulties for customers.

2. Assemble a diverse team across departments representing each segment of the journey. Engage individuals who have in-depth knowledge of the journey in question. For instance, a software upgrade program should involve product and support leaders.

3. Have each team member document the experience of a single customer from start to finish. Focus on the customer’s actions (not merely the process) and their reactions.

4. Review and compare insights, noting discrepancies.

5. Delegate segments of the journey to the relevant departments. For example, billing queries should go to accounts, and product-related inquiries should go to product marketing. Each department should outline improvements in the context of their corresponding interactions.

6. Reassemble the team to present a refined customer journey map, with particular attention to process transitions. Remember, the goal is to document the best possible customer experience.

While AI enhances personalization, efficiency, and customer support, it also introduces challenges. These systems may lack empathy, misconstrue context, or raise concerns surrounding data privacy. An overdependence on technology can yield impersonal experiences or exacerbate biases.